I move:
That a sum not exceeding £163,415,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1985, for the salaries and expenses of the Office of the Minister for Labour, including certain services administered by that Office, and for payment of certain grants and grants-in-aid.
In the national plan Building on Reality the Government identified action on the employment front as the central economic and social priority. The plan outlined the broad strategy adopted by the Government to create the conditions for stimulating investment and generating employment.
While the vast majority of the labour force have jobs, the Government's main concern is for the significant minority who have not. We face a situation where labour force growth will continue to exceed the growth in employment. This means that the Government's direct job creation interventions through employment schemes must be intensified if the level of unemployment is to be reduced in the years ahead.
The present framework of manpower policy is based on the White Paper on Manpower Policy which was issued in 1965 over 20 years ago. The White Paper was drawn up against a background of economic expansion and growth in employment, not only here but in all the OECD countries to which Deputy Lenihan referred on the Order of Business. The emphasis in manpower policy was on adjusting the supply side of the labour market, the workforce, to suit the requirements of the demand side — the needs of industry.
The approach adopted in the sixties achieved that objective. It ensured that the skill needs of the economy were satisfied; it helped workers to benefit from the additional job opportunites which flowed from the industrialisation programmes; and it raised the overall technical competence of the Irish workforce.
The deterioration in the economic and social environment since the mid-seventies led to a number of additions to our manpower programmes, mainly in the form of special schemes directed at alleviating the worsening unemployment situation. These initiatives represented more a change of emphasis within the existing policy framework than any adjustment of the underlying policy geared to longer term labour market problems.
On my entry upon office as Minister for Labour, I undertook to put our approach to manpower policy under the microscope. New policy measures and new working methods are needed to cope with the demands created by the labour market. Last year I decided to initiate a review of the operation and implementation of manpower policy with a view to producing a White Paper which will provide a framework for action over the rest of this decade and throughout the nineties. In Building on Reality the Government signalled the significance of the emerging change in the labour force structure as between different age categories. An active labour market policy must respond to the needs of all those unemployed, but particularly unskilled persons over 25 years, who are least likely to benefit in the short term from renewed economic growth and expansion in employment. The funding arrangements for manpower programmes also have to be looked at.
A large proportion of domestic funding comes from the youth employment levy which is restricted to under 25's. This youth-oriented focus is reinforced by the EEC policy of denominating 75 per cent of ESF resources for programmes catering for under 25's. When allowance is made for the fact that by 1991 more than half our labour force between 15 and 64 will be concentrated in the 25-44 age group, the need to review funding arrangements with a view to adopting a more flexible approach in the allocation of resources is evident. The White Paper will, of course, take account of recent studies on manpower and related labour-market issues including the report of the Dáil Committee on Public Expenditure.
I already have had very constructive discussions with the representatives of the various manpower bodies and I intend to consult with representatives of both sides of industry shortly to get their views and suggestions. I hope to be in a position very soon to consult with my colleagues in Government about my proposals with a view to publishing the White Paper on Manpower Policy this year. In the year since I announced this major review of manpower policy, we have already seen a significant start in the direction of closer co-operation of institutional arrangements and towards greater decentralisation of decision making.
The problems encountered in managing the transition from school to work and in integrating and maximising resources at an institutional level between the educational and manpower agencies were examined by Deputy George Birmingham, in his capacity as Minister of State at both the Department of Labour and the Department of Education. The Minister of State identified aspects of the current institutional arrangements which can be improved and made a number of recommendations in this regard which have been approved by Government. The recommendations are designed to lead to greater co-ordination and collaboration between the various agencies which, in turn, should lead to a better delivery of services.
The completion of this review, and the follow-through on its findings should serve to allay many of the unfounded perceptions about the prospects for the young persons leaving our educational system each year. The main focus of the exercise was twofold:
—to ensure that support and assistance is readily available for young persons encountering difficulties in gaining access to jobs;
—to ensure that the significant resources committed to sustaining youth employment and training opportunities yield value for money.
With regard to the primary concern for co-ordination of effort, the report urged that the National Manpower Service be developed as the single user point-of-contact and that, it should act in close liaison with the Department of Education in identifying young persons coming on to the labour market who might have problems in adapting from education to working life. This liaison will be a key element in the implementation of the EC social guarantee which committed member states to do their utmost to ensure that all young people leaving compulsory education can benefit from a period of full time training and/or initial work experience of at least six months duration. I am satisfied that the implementation of the social guarantee, on the basis of proposals advanced by the Youth Employment Agency, will represent a model of the kind of co-operation and supportive relationships which can be established between the education and manpower spheres. The social guarantee has been introduced initially already in four trial areas, and will be extended to all early school leavers in September 1985.
The second major concern was to ensure value for money in the delivery of youth employment services. The evidence is there in the steps towards greater co-ordination and in the practical solutions which have been focused more heavily in the last two years on young persons entering employment for the first time. The heavy investment through the youth employment levy, following on the establishment of the Youth Employment Agency in 1982, has ushered in a range of opportunities and initiatives geared to youth.
I should say that the Minister of State's review was mainly concerned with existing arrangements and to see how best they could be improved. In the course of the review it was evident that a more fundamental examination of certain policies and institutions was necessary. This can be achieved only in context of the general review of manpower policy which, as outlined earlier, is at present in progress.
The National Manpower Service was set up at a time of economic expansion when the principal manpower problems were shortages of technological, management and craft skills. Placement was its pivotal function. The main activity involved placing job seekers in suitable employment and assisting employers to recruit employees at all levels from unskilled to top management. In view of the changed economic climate and the slack labour market, the whole focus of this service has been radically altered. The main task of the National Manpower Service today is to develop and administer the range of measures which the Government have adopted to sustain or augment labour demand.
Facing the challenge of unemployment remains a community-wide responsibility. Employers are still slow to respond by taking on jobseekers who are difficult to place in the open labour market and are reluctant to organise training which will benefit their own organisation and the individual employee.
Work is now in progress on streamlining the activities of the National Manpower Service. A wide-ranging process of organisational change and renewal is already under way. The consistent aim of this programme is to improve the efficiency of the Manpower offices. I have asked the management of the service to look to the scope for more simplified regulations, more efficient administration and delegated decision-making powers. Jobseekers, employers and community bodies must be able to obtain more rapid information about employment opportunities, recruitment assistance and the support available for job creation projects at local level.
As part of this service improvement programme, I have sought to ensure that contacts with manpower offices are made easier. I have arranged to have four new offices opened in Blanchardstown, Clondalkin, Dundrum and Swords, as soon as suitable accommodation is acquired. This will bring the total number of full-time offices to 48 and, in addition, part-time offices are operated as and when the need arises in more than 80 towns where there are no permanent offices.
Access to the administration and information services provided by the NMS begin at the reception point in local offices. Comprehensive display facilities are needed to highlight the basic facts about employment, work experience and training opportunities. Ease of access to this information frees the placement and guidance staff to devote more time to individual assistance to job applicants and more advanced counselling. I have directed that the occupational guidance service be more closely integrated in the delivery of the special measures designed to assist unemployed persons. I hope this will help participants to gain additional benefit from the programmes and schemes concerned.
A further stage in the process of streamlining manpower office activities and enabling the NMS to operate efficiently will be to introduce a computerised registration system throughout the country. A feasibility study has already been carried out and I have made arrangements for the extension of the existing provision in a number of the larger Dublin offices.
I envisage the entire network of offices having access to a corresponding system within two years. Computerisation should make it possible for applicants to be more rapidly informed of vacancies. In this way too, vacancies may be filled more promptly and reliably. The manpower authorities will be assured of more accurate data on registrations and programme activity and will be better equipped to follow up job seekers, and augment their information and counselling. This can mean shorter unemployment periods, shorter vacancy periods and substantial social and economic benefits to the community as a whole.
The centre of gravity, not just in this country, but in all other European Community member states has shifted from the transition from school to work to the continuing growth of the long term unemployed. By October 1984 persons in this category in Ireland numbered 86,500 or 41 per cent of those unemployed.
The incorporation in Building on Reality of novel interventionist measures such as the social employment scheme and the alternance scheme represents an important initiative in the interests of long term unemployed.
Manpower policy has to hear a heavy load in trying to influence labour demand in favour of these categories, and to alleviate the effects of imbalances in the labour market. Special intervention measures and schemes can be justified on the grounds that they make better use of economic resources. They concentrate resources on active measures providing the opportunity of "hands-on" experience of practical work and divert expenditure from the passive end of the employment services — the social assistance payment to the inactive and demotivated worker.
The social employment scheme which I launched on 22 February 1985, represents a positive Government response to growing concern for the plight of the long term unemployed, particularly those in the over 25 age group. The purpose is to assist the large number of productive and energetic persons who have been unemployed for an extended period to make a worthwhile contribution to the social development of the community.
The scheme offers part time work on a half weekly basis for up to 12 months to persons who have been unemployed for over a year and who are in receipt of unemployment assistance. Participants are paid £70 per half week in lieu of unemployment assistance with the facility to take additional employment during the remainder of the week if they so choose. Under the scheme public sector and voluntary organisations may submit projects for consideration. To be eligible, projects must be non-profit orientated, must respond to clearly identified community needs and must not substitute for existing employment.
I am pleased to say there has been a very positive response to the scheme from both the unemployed and potential project sponsors. To date the Department have received in excess of 20,000 inquiries about the scheme. The scheme is operated by the National Manpower Service who have received approximately 450 proposals for the scheme to date with an employment potential of 3,000 persons approx.
The standard of the projects already proposed is encouraging as is the level of response from a range of local authorities, voluntary organisations and individuals throughout the country who are anxious to promote the scheme in their own areas.
There are ten projects now in operation employing 165 people and a further 100 have been approved and will commence during the next couple of weeks, bringing to 850 the number of persons employed on the scheme. I expect the participation level to achieve its target of 10,000 within a year of its operation.
It is appreciated that getting insurance at a reasonable price is proving a major problem particularly for voluntary bodies who wish to avail of this and other schemes. Consequently the Department are having discussions with various insurance companies with a view to ensuring that insurance is available to potential sponsors in the voluntary category at a reasonable rate.
The level of youth unemployment in this country is now, with the exception of Germany, the lowest of any member state of the European Communities. This achievement must be seen in context, we have the highest percentage of young people in the labour force of any other member state, and the level of our overall unemployment is among the highest in the European Community but we have the lowest level of youth unemployment. This has not come about by accident. It can be ascribed to the efficacy of the youth employment levy and the expansion of the various measures of labour market policy aimed at channelling both the young persons and the hard-core unemployed into the open labour market.
In the current year about 69,000 young people will benefit from schemes funded from the youth employment levy. That figure only barely exceeds the number of young people leaving school this year. In view of the constraints on the public finance this high activity level could not have been made possible without the availability of the additional funds provided by the introduction of the youth employment levy in April 1982.
I have been encouraged by the results of the latest school leavers survey which shows that more school leavers have been finding jobs after completing their education. Again I must stress that a significant number of jobs continue to be available for school leavers. The survey also provides further evidence, if evidence is needed, that employment prospects are improved substantially by educational qualifications.
In 1985 the main thrust of the Youth Employment Agency's activities will be for the continued expansion of State aided training and work experience programmes for young people, the development and expansion of the community enterprise programme as the agency's primary direct job creation programme and the review of the present provision of training and other support for young people starting their own business. A total of £412,000 was paid out to community groups in 1984 under the community enterprise programme, and £3,620 million is being allocated for this purpose in 1985.
The agency has a specific responsibility to review the effectiveness of youth employment, work experience and training programmes. This enables the agency to improve the quality, content and targeting of the various programmes thereby ensuring that levy funds are more effectively used.
The activities of the agency in 1985 will also focus on the development of improved access to training for the disadvantaged through the extension of community workshops; the agency will continue to pilot new approaches on existing levy-funded programmes and are supporting the expansion of the vocational preparation and training programme of the Department of Education as a means of assisting young people in the transition from school to work.
The commissioning this year of eight pilot COMTECs will mark a further step towards the decentralisation of decision making and the local integration of planning, delivery and monitoring of youth employment services. The first of the community training and employment consortia gets underway in Cork this month and will be followed by start-ups in Donaghmede-Artane, Kerry, Laois-Offaly, Mohaghan, Sligo, Tallaght, Dublin and Waterford on a schedule that will run to February 1986.
School leavers and other unemployed youth will also benefit from the training opportunities in the hotel, catering and tourism industry provided by CERT. Over 1,300 trainees will pursue craft training at designated colleges throughout the country combined with periods of work experience in industry. In addition over 600 unemployed persons will be given a short training of ten weeks duration in CERT's Roebuck Centre and six temporary centres located in the tourism regions. CERT's considerable success in achieving nearly a 100 per cent placement rate on completion of courses is greatly assisted by its continued involvement with employers through its training services to the industry. The prospects for tourism, this year are such that CERT will have no difficulty in placing all the people participating in their training programmes and there is a demand for trainees at this stage. We are looking at the possibility of extending places.
Employers have a primary responsibility in industrial training but given the pace of change and the complexities of modern business, the State through AnCO has played a dynamic role in supporting and encouraging industry. This training is intended to improve the qualifications of job-seekers and, accordingly, their employment opportunities. In order to produce the best results, the range of courses is now being made more flexible. In this way training can be more rapidly adapted to new requirements and new techniques at work.
The White Paper on Industrial Policy issued in July last outlined industrial development priorities. My Department will ensure that training policy will be adapted in line with industrial policy particularly as regards pursuing priorities of strategic importance. I am heartened by the growing responsiveness of the training services to this, reflected in increasing attention to marketing, product design and small business training programmes.
Without detracting from the value of training provision for unemployed youths it is clear that a serious imbalance exists in respect of unemployed persons over 25 years of age. I have directed AnCO to substantially increase their training services for this category in 1985 given the fact that over 25 year olds represent the majority of those on the live register.
The alternance scheme was introduced as part of the Government's national plan, Building on Reality to address the needs of older workers suffering long term unemployment. This initiative by the Government is a response to the growing numbers who are unable to secure re-entry to the employment market and who are in danger of losing all interest and motivation in job seeking. It is hoped that the combination of training and work experience will enable jobless person to return to employment by providing them with new skills, greater flexibility and renewed interest.
While the alternance scheme will provide a new impetus to increase the training opportunities for over 25 year olds it will continue to be complemented by other efforts. AnCO are sensitive to the traditional reluctance of many older workers to consider training as an option during unemployment and are paying particular attention to tailoring appropriate courses for older workers. These include enterprise courses where previous working experience is reviewed and made the basis for launching out into new business and moving into self-employment.
Of course, as with all services funded from public expenditure, the availability of resources is an important factor in determining how far one can respond to identified needs. Increasing Exchequer funds are being made available for training programmes but the European Social Fund's changing criteria are limiting our capacity to respond to problem areas as flexibly as we would wish.
The modest Exchequer capital allocation for AnCO in 1985 reflects the successful completion of a nationwide network of 18 training centres in 1984. AnCO are confident that they can meet the training needs of industry and the unemployed with their present training centre capacity suitably supplemented by external training, workshop, mobile centre and community youth training programme opportunities. The response of community interests to the development of AnCO's LINC programme has been particularly encouraging. More flexible forms of training can be developed in response to community needs and conducted in new, more decentralised forms.
The National Manpower Service's work experience programme funded from the youth employment levy has been one of the most successful intervention measures to help young people gain practical work experience in a real work situation and thus assist them obtain their first job. Over half the young people who participated obtained permanent employment, many with the very sponsors who offered them the work experience. This year I have arranged that an educational element should be incorporated in the programme. A sum of £6.75 million is being allocated for up to 8,000 programmes during 1985.
A sum of £6 million has been allocated in 1985 for the continuation of the grant scheme for youth employment now known as Teamwork, following a joint review carried out by the Department and the Youth Employment Agency. Because of the diversity of the type of projects which have engaged the interest of local voluntary organisations concerned to provide temporary community-based employment for young people, my Department have already this year received a record number of applications for assistance. These are being processed at present and it is expected that the £6 million from the 1 per cent employment levy will allow for the employment in 1985 of approximately 3,000 young people on programmes of six months duration or longer.
The enterprise allowance scheme was introduced in December 1983 with the aim of giving unemployed people an opportunity to set up their own enterprises while at the same time guaranteeing them a certain weekly income for the first year. The scheme provides a weekly payment of £30 for a single person and £50 for a married person.
It became clear at an early stage that the scheme was generating a lot of interest and that many applicants required additional capital in order to get started. The Government decided that applicants should be allowed to capitalise their weekly payments to assist with start up costs, provided that the applicant himself was investing at least £500 in the project. I should stress that the sum of £500 can be in the form of capital assets such as a car or equipment as well as in the form of cash.
As a further incentive an applicant who is in receipt of pay-related benefit may capitalise his remaining entitlement, up to a limit of 26 weeks payments, in the form of a start up grant. This innovative aspect of the scheme will encourage individuals who may be in receipt of high unemployment payments to seriously consider taking a chance at going out on their own.
In December 1984 at the end of its first year of operation 4,774 people had left the live register to avail of the scheme. Of these, approximately a quarter were in the under 25 age group. The indications are that interest in the scheme is continuing into 1985 and I expect participation levels to hover at about the 5,500 mark through the year.
The enterprise allowance scheme is an example of a labour market policy measure which can prove to be lower in cost than the cost of unemployment and, without question, profitable both for the public purse and for the national economy as a whole. Enterprises have been established in almost every area of economic activity with groups of people forming co-operatives in certain cases. The scheme will inevitably lead to further spin-off employment and is currently being evaluated to ensure that the maximum use is being made of the resources available. The scheme will be reviewed in the light of this evaluation.
I restructured the employment incentive scheme last year in order to improve its efficacy as an incentive for the recruitment of the older longer term unemployed. In addition, the stipulation that recruitment be confined to two jobs per employer per annum had as its objective the limiting of windfall gains to larger employers, under previous schemes. Eighty per cent of recruitments under the restructured scheme are in firms employing ten or less employees. These adjustments have made the scheme more cost effective.
The extension of the scheme to the services sector has helped to augment recruitment, which I anticipate will be somewhere between 6,000 and 8,000 in 1985. In 1984 about 63 per cent of recruitments under the scheme were taking place in the services sector and a further 7 per cent in construction, a total of 70 per cent of all recruitments.
I have already referred to the question of the future funding arrangements for manpower programmes. The form and orientation of our programmes reflect not only domestic policies on maximising our resources, but also the influence of the European Social Fund and its structure.
The Social Fund has been of immense benefit in this country and the aim of the Department of Labour, which is the designated national agency for dealing with the fund, will be to retain Ireland's exceptionally favourable position as regards income from the fund. In 1984, despite the severe EC budgetary problems which affected the Community as a whole, Ireland was approved for £158 millions of aid which was 11.79 per cent of the total fund — our highest ever share. The allocations for 1985 will not be officially known until approximately July next, and I expect it to be in the region of £186 million or approximately 13 per cent of the fund.
I should point out, however, that I see certain danger signs that could affect our income from the ESF in the years ahead. Just as Ireland has been increasing its share of the fund through the Government's commitment to training and an efficient approach to the fund rules, other member states have been doing less well. With rising unemployment now affecting all member states and the resources of the Social Fund severely limited, there have been calls from certain quarters for a more "equal" share out of the fund. When Portugal and Spain join the Community, competition for Social Fund resources is likely to intensify and we will find it difficult to sustain our present very favourable position. The organisations who benefit from the fund must prepare themselves for the possibility that assistance may not be as readily obtainable in the future as it was in the past.
It is my intention to give a very high level of priority to our applications and claims on the Social Fund so as to maintain our present satisfactory level of assistance. I intend to review the record of our utilisation of the fund and to take whatever steps may be required to strengthen our hand in deliberations about the future of the fund at Community level. Our primary concern is to insist on the retention of a strong regional dimension in the fund and to see that its resources are expanded so as to ensure that the current level of receipts to disadvantaged regions is not diluted in the enlarged Community.
It is now over a year since the new board of Ostlanna Iompair Éireann was appointed to run the hotel group. In that time the board have made significant strides in tackling a very difficult task. A rationalisation programme has been agreed and implemented without any significant industrial relations difficulties and necessary refurbishment work has begun on the properties. In the latest report to me the chairman pointed to an improvement in performance in 1984 and prospects for 1985 are good.
The board's immediate objectives are: (i) to reduce operating and central administration costs; (ii) to increase revenue; and (iii) to restore the physical standards of the properties and maintain levels of service.
A refurbishment programme has been drawn up to be undertaken in the 1984-1985 and 1985-1986 winter seasons. A sum of £425,500 was provided in 1984 for this purpose. A further £2.553 million will be provided this year. This programme is well under way.
As you will be aware, my responsibilities as Minister for Labour extend not only to the promotion but also to the protection of employment. This is achieved by implementation of the existing legislation administered by my Department and the introduction of new or amending legislation where appropriate. In the course of the last decade or more, significant advances in labour legislation have provided assistance to workers by establishing standards and laying down a basic "floor of rights". In recent times the contrasting fortunes of the US economy compared with that of Western Europe has focussed attention on the concept of "deregulation" as a means to restore economic growth to previous levels. Although deregulation is a broad concept encompassing measures to eliminate rigidities of all types in all markets, worker protection legislation has become the prime target of many advocates of greater flexibility in our economy.
While I would not choose to ignore the argument that aspects of the legislative codes previously enacted for the protection of workers may no longer be appropriate to the Irish economy, it is important to view the employment disincentive impact of such legislation in its proper context. I would suggest that rigidities such as high payroll taxes, restrictive practices by trade unions, administrative costs of employment, etc. are far more damaging to employment. It would be naive to expect that a general "loosening-up" of protection for workers will, of itself, prove to be a panacea for all our economic ills and pave the way for a return to high employment. What is required is a co-ordinated effort to remove all unjustified obstructions to increased employment levels. In this context I would favour the adoption of a more systematic approach to identifying all forms of rigidity which might be standing in the way of increasing job opportunities and the better management and expansion of the production apparatus. Attention should not be confined to a single source of rigidity in a single market.
In implementing their economic policies Government must seek to ensure a proper balance between equity and efficiency. Looking after the interests of disadvantaged groups in the labour market and establishing broad equality of opportunity constitute social policy objectives which, in my view, must remain central to economic recovery and to improvements in the working of the labour market. Having said this, however, I am of the opinion that too frequently our response to problems in the labour market has been to rely on the law — to see it constantly as either the constraint or the remedy. For my part I have set out to adopt a clear stance on the role of legislation in the employment field and to concentrate on a limited number of priority areas which warrant amending legislation. The improvement of working conditions need not rely entirely on regulatory measures and requires a pragmatic and flexible approach to current problems. Many of the significant developments in both labour relations and the working environment owe little to legislative action, and are not necessarily amenable to such influence at all. My Department's sensitivity to any defects, difficulties or abuses encountered in working conditions is dependent on the quality of their relations with other parties in the labour market and with individuals or groups seeking assistance, and on our means of monitoring the economic, social and technological circumstances which affect the working environment.
In the last year a significant addition was made to the body of protective legislation, with the introduction of the Protection of Employees (Employer's Insolvency) Act, 1984. This measure was introduced in response to a disturbing trend in employment reflected in the number of firms closing down without notice, leaving employees with arrears of wages, holiday pay and other entitlements. The new Act which came into operation last November, but with effect from 22 October 1983, is designed to protect the entitlements of employees in such situations.
The Act is administered by the insolvency payments section of my Department. It covers arrears of wages, holiday pay and sick pay, entitlements under the Minimum Notice and Terms of Employment Act, 1973, the Anti-Discrimination (Pay) Act, 1974, the Employment Equality Act, 1977, civil court orders in respect of unfair dismissals, and outstanding contributions to company pension schemes. Payments under the Act from the Redundancy and Employers' Insolvency Fund amounting to £300,000 have been made under the Act in the period up to the end of April 1985. Claims in the pipeline and which will be paid over the coming months amount to about £1,500,000.
I have selected several areas for legislative action on the basis of priorities selected from a range of programmes conducted by my Department. These are: the Hours of Work Bill, currently before this House; a framework Bill based on the recommendations of the Commission of Inquiry on Safety, Health and Welfare at Work; better known as the Barrington Commission's report; a Safety, Health and Welfare (Offshore Installations) Bill; amending legislation based on the review of the operation of the Unfair Dismissal, Employment Equality and Worker Participation Acts; and amending legislation on foot of the current discussions on industrial relations reform.
I will deal now with the work safety and health system. The protection of people from accidents or damage to health at work is one area which exemplifies where and how a flexible and pragmatic approach can be adopted by Government. The analysis of our present system undertaken by the commission chaired by Mr. Justice Barrington is characterised by a certain distrust of legalism. The commission of employers, farmers, trade unionists and other interests cast doubts on whether safety and health at work can be advanced by an excessive reliance on detailed and increasingly complex regulations. I agree with this analysis and am moving towards the installation of the new system recommended by Barrington through legislation and regulations which will clarify central issues such as rights and responsibilities. These measures can have a catalytic effect as part of a broad approach, embracing education, information and participation, which will be designed to arouse awareness and leadership.
There are no soft options in dealing with safety and health at work. There is much that is disquieting about the present system — its low priority; inadequate information; gaps in professional expertise; little or no education and training programmes. Accordingly, I am giving priority in my Department to work directed towards the implementation of the Barrington Commission's recommendations. Already, significant progress has been made in the development of a draft framework Bill based on the commission's recommendations. The early finalisation of those proposals is one of my major legislative targets and, as I have already indicated, I propose to involve the social partners as closely as possible with the developments of my plans in this area.
Let me turn now to unfair dismissals. In the course of the development of proposals for amending legislation based on my review of the Unfair Dismissals Act 1977, I have been careful to maintain a balance between the entitlements of employees to continuity of employment and the operational requirements of employers. Recent research on the Act has not identified a negative impact for employment creation, but has shown that in fact it has benefited both sides of industry by raising the standards of personnel management and by improving selection procedures. The availability of redress has also helped greatly to reduce the number of industrial relations conflicts over individual dismissals.
In regard to employment equality, I am satisfied that there is scope for improving the effectiveness of the equality legislation by removing areas where inequalities — subtle and indirect, but quite significant — continue to exist. It is my intention to amend both the Equal Pay and Employment Equality Acts. The proposed measure will take into account the need for adjustments in the scope and coverage of those Acts and in the operation of the enforcement and adjudication procedures.
I propose to extend the scope and coverage of the Worker Participation (State Enterprises) Act. I have identified a further six State enterprises which will be brought within the ambit of the Act, I also propose to provide for the establishment of sub-board structures. To this extent the measure will be of an enabling character giving support to employee influence but not regulating in detail how decisions should be made or what decisions should be reached.
I shall now deal with current developments. I have established an Advisory Committee on Worker Participation to advise on the scope for development of employee participation at sub-board levels within different types of work organisations, to promote interest in practical experimentation in workplace participation and to identify research needs and make recommendations. The committee is headed by an independent chairman and is composed mainly of representatives drawn from both sides of industry. I am confident that the committee will provide an essential stimulus to action, more particularly in the private sector, where, tragically, to date there has been little or no progress in the area of worker participation and consultation.
I want to turn now to issues of positive action. During our Presidency of the European Communities I secured, in my capacity as President of the Social Affairs Council, the agreement of my ministerial colleagues from the other member states to the adoption of a draft recommendation on the Promotion of Positive Action for Women at our Council meeting on 13 December last. Prior to that, in November, the Government, on my recommendation, issued a policy statement on equality of opportunities between men and women in employment. The statement exhorts all organisations to issue a statement of commitment embodying the principles of employment equality and to provide the necessary encouragement and guidance to staff to implement that policy.
The boards of all State-sponsored bodies have been requested to adopt the policy statement and to institute appropriate arrangements to ensure its implementation. Progress is being monitored by my Department.
I now come to the major issue of industrial relations. The industrial relations picture in 1984 was a mixed one. With a relatively small number of exceptions, the 24th wage round has been largely free, like its predecessors, of widespread or large-scale industrial conflict. I should like to pay a tribute to and compliment both sides of industry who made that possible. For the first time perhaps since the late sixties or early seventies there was plant by plant, industry by industry bargaining by people who, so to speak, might have been considered out of practice in such procedures for a period of at least ten years.
Figures prepared by my Department show, however, that the number of strikes increased from 151 in 1983 to 191 in 1984, though the number of man days lost increased much less sharply from 311,000 to 364,500. These figures clearly suggest a significantly increased incidence of strikes involving relatively small numbers, or lasting for a relatively short period of time, or both combined. The causes of this would seem ultimately to lie in the many different strains to which the employer-employee relationship is likely to be subject at a time of economic retrenchment and rapid technological change. It is very regrettable that the friction stemming from these causes could not be more constructively handled in many cases. This underlines once more the need for the patient cultivation of relations of mutual trust between management and unions and the introduction of more developed and widespread procedures for information disclosure and consultation.
In regard to trade union rationalisation, the present situation where a large number of trade unions represent a relatively small workforce excerbates our industrial relations problems. The Trade Union Act, 1975, was intended to facilitate amalgamations between unions by simplifying procedures and making grants available towards the costs involved. The Act has not had the effect which was originally envisaged. For this reason I am considering the scope for improvements in the incentives available under the Act and have proposed the introduction of legislation to amend the Trade Union Act, 1975.
The role of law in situations where collective bargaining breaks down and industrial action is contemplated or takes place has always been a thorny issue, not just in this country but throughout the industrial world. Our law in this arena has evolved in a relatively piecemeal and ad hoc fashion to deal with particular problems. A consensus on industrial relations strategy should serve to sustain a more coherent framework. Finding a satisfactory institutional and legal mix which will have meaning and relevance in a dynamic society presents a challenge which compares with that which confronted our predecessors in the mid and late forties. My Department's proposals for industrial relations reform were published on 21 March 1985. The proposals covered the following areas: review of existing institutions; codes of practice; trade union structure; and minimum wage-fixing machinery.
The proposals provide for major and fundamental changes in our system of industrial relations. They suggest the replacement of the system of legal immunities which has been the basis of our trade dispute law since 1871, over a hundred years ago, by a system which would give workers a positive right to strike. The establishment of an independent Labour Relations Commission with statutory responsibility for the promotion of good industrial relations and for the provision of conciliation, advisory and other services is also envisaged. Since the publication of the proposals officials of my Department have held a number of meetings with the Irish Congress of Trade Unions and the Federated Union of Employers. While this process of consultation is both necessary and valuable, I have tried to ensure that the need for prompt progress is continually kept before all sides.
Let me turn now to the issue of information in the workplace. Knowledge of the basic principles of labour law is essential to those in management and trade union positions. I have sought to ensure that my legislative reform programme will serve to reduce the complexity of legal rules and prove accessible to al those directly involved in working life. Labour law — I think the Ceann Comhairle might appreciate this particular point — is not the exclusive preserve of legal practitioners but is a most important avenue for protecting workers' basic rights. I have lately taken steps within my Department to ensure that persons encountering problems in any particular area such as access to employment, dismissal, redundancy, etc. may be afforded a comprehensive information service enabling workers and employers who are experiencing difficulties in the workplace to use the system if they wish to do so.
Deputies will be aware that the first annual report of the Department of Labour was published earlier this month. Its availability as a record of the Department's administrative activities has given me the opportunity to address some of the more developmental and broader policy aspects of its work. I believe that the report will in future assist Deputies in reviewing the Department's work. I will endeavour to ensure that a similar publication schedule is adhered to in future.
I recommend the Estimate to the House.
